Supreme Court of the United Kingdom [2020] UKSC 37
The case of Unwired Planet International Ltd. v.
Can a national court determine global licensing terms for standard essential patents (SEPs) under FRAND terms, and what constitutes appropriate royalty terms for such patents?
FRAND terms require that standard essential patents be licensed on fair, reasonable, and non-discriminatory terms. National courts have the jurisdiction to set these terms, even when the licensing extends internationally, provided that it pertains to the remedying of local patent infringement.
The UK Supreme Court held that the UK courts have the jurisdiction to determine the terms of a global SEP license and impose such terms as a remedy for infringement. The court found that Unwired Planet's offer to Huawei was within the range of FRAND terms, thus legitimizing the imposed global licensing terms.
Unwired Planet v. Huawei is pivotal for law students because it clarifies the role of national courts in setting international FRAND licensing terms. This decision underscores the importance of a harmonized legal approach to patent licensing globally, especially amidst the digital economy's rapid expansion. The ruling has significant implications for patent holders and licensees, providing clearer guidelines and promoting fair negotiation practices.